I wonder if this is connected to the Vision Pro release. That’s another giant hardware fishing project that failed to meet the “vision” of an all-day wearable iPhone. Perhaps it became obvious that the car was in even murkier waters. And to dump some of the employees on image and text generators off whatever self driving computer vision work they were presumably doing before? Interesting choice.
AVP has not failed yet. Saying so today would be akin to stating that the iPhone failed in the fall of 2007. Some did, Steve Ballmer laughed his butt off, convinced that no one sane will ever buy a $500 phone.
VR seems very different from that. Most people simply don’t want what companies are trying to sell them, and I think multiple major technical breakthroughs would be necessary to change that.